Opening Bell: 01.14.14

Witness at Martoma Trial Notes Pressure to Produce at SAC (WSJ)
SAC Chief Financial Officer Daniel Berkowitz told jurors that SAC’s employment contracts contain a “down and out” clause that means if managers lose a certain percentage of capital, they can be fired. “If you’re down that amount, you’re out,” Mr. Berkowitz told jurors. While losing money for SAC could cost traders their jobs, those that gave trading ideas to Mr. Cohen that made profits received bonuses, a process internally referred to as “tagging,” Mr. Berkowitz told jurors. Mr. Cohen’s personal portfolio was by far the largest at the fund, Mr. Berkowitz said, and portfolio managers were strongly encouraged to contribute trading ideas to his account.

House Unveils $1.01 Trillion Measure to Fund Government (Bloomberg)
House and Senate appropriators agreed to a $1.01 trillion bipartisan bill to fund the U.S. government through Sept. 30, unveiling the measure days before funding for federal agencies is scheduled to lapse. The legislation, announced by lawmakers including House Appropriations Committee Chairman Hal Rogers, a Kentucky Republican, and Senate Appropriations Chairman Barbara Mikulski, a Maryland Democrat, probably will reach the House floor on Jan. 15, Rogers said.

Gold to tank in 2014: Goldman Sachs (CNBC)
Bad news for “gold-bugs”—bullion’s current beginning-of-the-year rally will not only lose steam, but prices could drop sharply by the end of 2014, according to Goldman Sachs’ Jeffrey Currie. Currie, Goldman’s head of commodities research, told CNBC on Monday he had an end-of-year price target of $1,050 per ounce for gold, a 16 percent drop based from current prices of $1,251. The main culprit? Economic recovery. “Our view there really is driven by the expectation of the U.S. economy reaching escape velocity,” Currie said on “Squawk on the Street.” “Essentially when you think about a short on gold … it’s essentially just a bet on a substantial recovery in the U.S. economy.”

Google Buying Nest for $3.2 Billion to Expand in Devices (Bloomberg)
Nest’s founder Tony Fadell, who previously helped create Apple Inc. (AAPL)’s iPod and iPhone, will keep running the product under its own brand, Mountain View, California-based Google said today on its website. The all-cash deal is subject to regulatory review and should close in the next few months, Google said. To diversify beyond Web ads, Google is buying its way into the gadget market, a spending spree that picked up in 2012 with the $12.4 billion purchase of Motorola Mobility Holdings Inc. By adding Nest, Google gains a popular seller of connected home thermostats and smoke alarms, while getting data on the growing number of customers whose energy usage is tracked online.

Questions Abound After Plane Lands At Wrong Airport (CNN)
A day after a Southwest Airlines jet with 124 passengers landed at the wrong airport, many are asking: How in the world could that happen? “It’s not common, but it’s not unheard of,” said pilot Mark Weiss, a 20-year veteran of commercial aviation who has frequently flown Boeing 737-700s, the same kind of aircraft that touched down Sunday at a small airport in Taney County, Missouri, about seven miles from where it was supposed to land at Branson Airport. The plane stopped about 500 feet from the end of a runway at M. Graham Clark Downtown Airport, but no one was injured, said Chris Berndt, the Western Taney County Fire District fire chief and emergency management director. “There are a lot of questions, and I suspect this is a matter of procedures not being followed, something along the long chain of everything you must do and constantly do as a pilot for safety,” Weiss said.

Oakland Raiders exec steps back from hedge fund (NetNet)
Paul Leff, who co-founded Perry Capital with Richard Perry in 1988, is stepping back from managing the hedge fund firm’s portfolio full time, according to two people familiar with the situation. David Russekoff, a 12 year Perry veteran, is now the firm’s sole chief investment officer, according to an investor in the firm. Russekoff had shared the role with Leff, who will remain at the firm but in a diminished role, according to the people. Perry remains president and chief executive officer.

Credit Suisse To Remain At 11 Madison (NYP)
Credit Suisse is signing a deal to restack into 1.2 million square feet on the lower portions of 11 Madison Avenue, paving the way for Sony to lease roughly 520,000 square feet on the upper floors. CS notified its employees Monday that a deal was completed to remain in the building. The Post has learned the financial giant signed a 20-year lease for the Art Deco granite and hourglass-shaped building opposite Madison Square Park where it already occupies 85 percent of the 2.3 million square feet. The asking rent was in the $70s a square foot, sources said, which will total roughly $1.8 billion over that time. The new deal will include expansion options in the next few years as well as a renewal term.

Investors Rethink Bets on the Dollar (WSJ)
…nvestors say they are becoming more selective about betting on a stronger dollar until policy makers make their intentions clear. That strategy was on display Monday: The dollar was down 1.12% against the yen at Y103.00 and was down 0.65% at $0.9054 against the Australian dollar, extending losses Friday against both currencies. However, the U.S. currency lost 0.01% to $1.3672 per euro and gained 0.58% to $1.6387 per U.K. pound. Before Friday, the dollar had been rallying against most major currencies.

Shia LaBeouf apologizes to Jim Carrey after slamming actor’s parenting skills (NYDN)
As Hollywood’s elite knocked back drinks at the [Golden Globes], presenter Jim Carrey took the stage and knocked LaBeouf for lifting material from comic book artist Daniel Clowes without attribution. Carrey started the verbal jab with the old show-business adage, “Dying is easy, comedy is hard.” “I believe it was Shia LaBeouf who said that,” he added sarcastically, as the audience laughed. “So young, so wise.” Carrey, 51, was there to present “American Hustle” as a nominee for best motion picture in the comedy and musical genres…The former Disney star made it clear he heard Carrey’s Golden Globes joke by issuing a series of cryptic tweets related to the “Eternal Sunshine of the Spotless Mind” star on Monday. One tweet linked to a YouTube music video from Carrey’s adult daughter. “At least I don’t get arrested for indecency on major LA highways! Or abandon love child’s,” he wrote in another tweet which was later deleted. LaBeouf then suddenly changed his tune and issued an apology to the actor. “Jim Carrey states that he is deeply involved in his daughter’s life – I accept that, regret tweet on the matter. Apologies to both parents,” he said in a follow-up tweet about an hour later. “I AM NOT FAMOUS ANYMORE,” he said in another message.

55 comments (hidden to protect delicate sensibilities)
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Comments (55)

  1. Posted by guest | January 14, 2014 at 8:31 AM

    We shall hold our breath for Shia until June where he, hopefully, will make it past the 27 Club.

  2. Posted by quant me maybe... | January 14, 2014 at 8:44 AM

    If he starts calling people ugly then we know that he needs the same meds as that Amanda Bynes kid; lf he shaves his head, he needs whatever meds Britney Spears gets; and if he gets his buddie's wife pregnant we'll know he's really Simon Cowell.

    >I WAS NEVER FAMOUS.

  3. Posted by Guest | January 14, 2014 at 8:55 AM

    OB at 7am? Not sure if this is a good thing by Shazzmaster or the sign of the apocalypse.

  4. Posted by The Shazzwart | January 14, 2014 at 9:03 AM

    Keep your head up Shazzwich, if you work hard and get these OBs early you might just have a click farm, a crotchety Twitter personality and a weird cryptocurrency in your future.

  5. Posted by Dr Snarf | January 14, 2014 at 9:48 AM

    Yeah, well, I taught Alberto Tomba how to ski. He owes me everything.

    -Shia

  6. Posted by Guest | January 14, 2014 at 9:49 AM

    Been happening since December, but definitely comment on it every morning like it's the first time you're seeing it. That doesn't get old.

  7. Posted by Guest | January 14, 2014 at 9:52 AM

    Get some new fucking material.
    -guy who likes taking part in the grand tradition of hazing DB newbies but is sick of reading a variation on the same comment about Shazar every fucking morning

  8. Posted by Guesticles | January 14, 2014 at 9:55 AM

    What's it like to be obsessed with leaving comments about a random blogger who never ever responds to your hard work and perseverance?

  9. Posted by guest | January 14, 2014 at 9:56 AM

    …until now

  10. Posted by Topsy | January 14, 2014 at 10:09 AM

    Worst comment since the invention of comments.

  11. Posted by E. Williams | January 14, 2014 at 10:13 AM

    How the hell did people have public meltdowns before Twitter?

  12. Posted by Guest | January 14, 2014 at 10:15 AM

    Dear Shia,

    Yes, you are famous, and no, you are not an artist. You're an entertainer. There's no shame to it. Just keep taking the ridiculous roles from unimaginative corporate Hollywood directors, and keep cashing the checks. Nicolas Cage made a living of it, and you can too.

    But please, do the rest of us a favor and keep yourself out of the press, unless it's a scripted opening night party for "Transformers VII: Vengeance of the Four-Wheel Drives". Tired worn-out action heroes are still bankable; pathetic wannabe troubled artists are not.

  13. Posted by quant me maybe... | January 14, 2014 at 10:19 AM

    MySpace

  14. Posted by Ur Shur | January 14, 2014 at 10:26 AM

    If I took Bess out to dinner on a date, I believe we would split the appetizer (maybe an artichoke dip). Then we would continue on to the main course where I would impress her with my suggested wine pairings. After dinner we would agree to have dessert and some coffee. I’d keep the conversation going with some lighthearted teasing. I would then make sure to have her home at a reasonable time so she could get her 8 hours. After waiting three days I would call to see what she is doing the following weekend.

  15. Posted by The Levine Duo | January 14, 2014 at 10:30 AM

    We have arrived.

  16. Posted by Guest | January 14, 2014 at 10:43 AM

    You are Bizarro to LaxBro's Superman

  17. Posted by Guest | January 14, 2014 at 10:45 AM

    Public-access television

  18. Posted by Bored Guest | January 14, 2014 at 10:46 AM

    Get the ball rolling; it's bess@dealbreaker.com; let us know how it goes kemosabe.

  19. Posted by pizza_with_fork | January 14, 2014 at 10:47 AM

    Artichoke dip…wine pairings…sooooo Guy Fieri's Times Square spot? Baller.

    Oh and nobody waits three days anymore. And dinner, drinks, coffee and taking her home at a reasonable hour firmly ensure your place in the friend zone. She'll be texting an alpha to come plow her at midnight in the Uber ride back to her apartment…you paid for.

  20. Posted by changer | January 14, 2014 at 10:51 AM

    Look at the bright side………. The narcissists will breed themselves out of existence in a generation………………

  21. Posted by SMU Secure | January 14, 2014 at 10:52 AM

    I feel bad for those CS people. That office is shit stain. The Houston offices are gorgeous though.

  22. Posted by pizza_with_fork | January 14, 2014 at 10:55 AM

    Artichoke dip..wine pairings..sooooo Guy Fieri's Times Square spot? You're a real bon vivant..

    Oh and nobody waits three days anymore. And dinner, drinks, coffee and taking her home at a reasonable hour firmly ensure your place in the friend zone. She'll be texting an alpha to come plow her at midnight from the Uber car back to her apartment..you paid for.

  23. Posted by KingCo | January 14, 2014 at 10:56 AM

    The only thing gorgeous about Houston is walking down the jetway at IAH as you are leaving that blighted redneck swamp.

  24. Posted by Guest | January 14, 2014 at 11:06 AM

    Speaking of, where is that guy? I need more sage advice from his dad.

  25. Posted by Guesticular Cancer | January 14, 2014 at 11:07 AM

    Except for most days since December.

    -Guy who was actually paying attention.

  26. Posted by Guest | January 14, 2014 at 11:10 AM

    Shazz can be a trickster with that time stamp.

    - UBS Time Stamp Correlation Quant

  27. Posted by Guest | January 14, 2014 at 11:12 AM

    Maybe Bess has always wanted to go on a trip to Flavortown.

  28. Posted by Guest | January 14, 2014 at 11:12 AM

    Dallas is lovely though.

  29. Posted by Hobbes | January 14, 2014 at 11:20 AM

    Drugs and social media are bad, mmmkay.

  30. Posted by Guestimate | January 14, 2014 at 11:27 AM

    — said no one ever.

  31. Posted by Guestasaurus Wretch | January 14, 2014 at 11:30 AM

    “At least I don’t get arrested for indecency on major LA highways!"

    Correct Shia – you get arrested for going after people with kitchen knives and ramming your car into other cars.

  32. Posted by Laxbro | January 14, 2014 at 11:34 AM

    I don't recall heavy handed sage usage in my Dad's dishes. He was big on the French medley herbs de Provence.

  33. Posted by Guest | January 14, 2014 at 11:36 AM

    You like big hair and mom jeans I gather?

  34. Posted by SMU Secure | January 14, 2014 at 11:37 AM

    If I were to take Bess out, I'd show her a 'Texas' good time by sticking my dick in the nearest four-legged animal.

  35. Posted by Rebecca M. | January 14, 2014 at 11:40 AM

    How quickly I've faded from memory, yet because you made some shitty movies they'll never forget you.

  36. Posted by Gary Busey | January 14, 2014 at 12:00 PM

    Remember Shia: Art is only the search; it's not the final form.

  37. Posted by guest | January 14, 2014 at 12:01 PM

    In my day we melted down at a press conference in front of real live people.

    - R. Budd Dwyer

  38. Posted by Guest | January 14, 2014 at 12:06 PM

    You are so weird. What is wrong with you?

  39. Posted by Rebecca M. | January 14, 2014 at 12:27 PM

    If by 'leaving comments', you mean financial modeling; and by 'random blogger', you mean my MD, then I'd say it's just another day at work.

  40. Posted by quant me maybe... | January 14, 2014 at 12:45 PM
  41. Posted by guest | January 14, 2014 at 12:47 PM

    I always imagine people who use "alpha" as a noun reeking of Axe body spray and latent gender uncertainty.

    That you, Shia?

  42. Posted by Shaz's beard | January 14, 2014 at 12:56 PM

    got drunk and videotaped eating a hamburger off of the floor

    -the Hoff

  43. Posted by Bored Guest | January 14, 2014 at 1:17 PM

    I don't get the downvotes. Brilliant parody of SMU Secure.

  44. Posted by Laxbro | January 14, 2014 at 1:50 PM

    "brilliant" is a rather ambitious characterization of that parody

  45. Posted by Guest | January 14, 2014 at 1:55 PM

    Were there earnings today?

  46. Posted by guest | January 14, 2014 at 2:09 PM

    oh no. why is times opening this can of worms?!

    Ex-SAC Capital Trader Found His Way to Stanford After Harvard Expulsion http://dealbook.nytimes.com/2014/01/14/ex-sac-cap

  47. Posted by VonSloneker | January 14, 2014 at 2:23 PM

    On the whole, Houston looks like a slightly cleaner version of Los Angeles (not a compliment). "The haves" seldom venture south of Westhimer, north of I-10, west of Beltway 8 and east of Montrose. Within that rectangle Houston IS gorgeous. Outside…your characterization is spot on. There are compensations, Houston is packed with beautiful girls…everywhere. Something I take for granted until I venture to Manhattan or, horror of horrors, Boston.

    - Guy whose been all over this great big world and seen all kinds of girls

  48. Posted by Rebecca M. | January 14, 2014 at 2:28 PM

    One man's trash is another man's treasure

  49. Posted by Philly sux | January 14, 2014 at 2:36 PM

    The dallas airport is nice

  50. Posted by Laxbro | January 14, 2014 at 2:41 PM

    Houston has a lot of dough and many shapely smokes. Also, M-F a steady stream of consultant, et al. fillies from all over the country touchdown at IAH and fire up Tinder to meet some strange. Or can be found in hotel bars looking for a parenthesis to the monotonous life they have back home.

  51. Posted by Guestido | January 14, 2014 at 2:43 PM

    Imposter?

  52. Posted by guest | January 14, 2014 at 2:52 PM

    yes!
    -guest who remembers

  53. Posted by Bored Guest | January 14, 2014 at 3:57 PM

    Hey, we're talking about SMU Secure here. That bar ain't set so high.

  54. Posted by SMU Secure. | January 14, 2014 at 5:30 PM

    If you think that visiting Houston is 'being all over this great big world', wait until you visit Dallas. Soon you will be bragging about having seen the best looking girls in the galaxy.

  55. Posted by VonSloneker | January 15, 2014 at 9:26 AM

    I've lived in South & Central America, Europe, the UK, the caribbean and, obviously, several places in the States. Vacationed and summered many others…Dallas is good not great. Most Dallas girls look like strippers, cheesy – Ft. Worth girls slightly less so. I will say that SMU girls know how to have a good time…

    - A nod's as good as a wink to a blind bat…say no more